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Salik to Apply 5% VAT on Tolls and Tag Fees Starting June 1
Starting June 1, motorists in Dubai will see a five percent value-added tax (VAT) applied to Salik toll tariffs and tag activation charges. The toll gate operator confirmed the update, noting that all collected tax revenue will be directly remitted to the Federal Tax Authority in full compliance with current UAE regulations.
This policy shift follows a similar announcement from Parkin, Dubai's primary parking operator, which also stated that a five percent VAT will be added to all parking services beginning on the same date. As both major transport entities align with these tax requirements, residents and commuters are advised to prepare for the slight increase in daily travel expenses.
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